Statement of Administration Policy: H.R. 1594 - Extend Most-Favored-Nation Status to Hungary

(House)
(Gibbons (D) FL, Frenzel (R) MN, and Lantos (D) CA)

The Administration, while sympathetic to the intent of H.R. 1594, opposes the bill because current law provides a preferable way to extend most-favored-nation (MFN) status to Hungary.

The Jackson-Vanik amendment to the Trade Act of 1974 allows the President to waive the prohibition on the grant of MFN status to a country which substantially restricts emigration, if such a waiver would further the amendment's goals. Presidents have taken this step annually with respect to Hungary since 1978. Hungary is now approaching total compliance with the provisions of the Jackson-Vanik amendment.

The Administration understands that the Hungarian parliament win consider a new emigration law this Fall that should confirm Hungary's already liberal practice. If^so, the Administration would support a Presidential finding that Hungary meets the Jackson-Vanik criteria and no longer requires an annual waiver. Moreover, if the Government of Hungary were to reimpose restrictions on emigration, the President would be empowered to either, withdraw MFN status, or make it conditional on an annual waiver. H.R. 1594 does not provide such flexibility in granting MFN status to Hungary.